HDFC Bank Surpasses ₹14 Lakh Crore Market Cap for the First Time

HDFC Bank made history on November 28, 2024, when its market capitalization surpassed ₹14 lakh crore for the first time. This milestone followed the stock reaching a record high of ₹1,836.10 on the National Stock Exchange (NSE). However, the market cap briefly dipped below this level later in the day due to profit-taking amid a broader market correction. At 03:15 PM, HDFC stock was trading at ₹1,794.50, down by 0.98% from its previous close.

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HDFC Bank remains India’s third most valuable publicly traded company. It trails Reliance Industries (₹17.38 lakh crore) and Tata Consultancy Services (₹15.46 lakh crore) in terms of market capitalization. Despite the brief dip, the crossing of the ₹14 lakh crore threshold underscores the bank’s strong market presence and investor confidence.

The recent uptick in HDFC Bank's share performance is largely credited to the MSCI index rebalancing that took effect on Monday, November 25. Analysts estimate that this adjustment could bring approximately $2.5 billion into Indian markets, with HDFC Bank expected to secure a substantial share of this inflow. HDFC stock price has risen around 5% this week. 

As part of the rebalancing, HDFC Bank’s weight in the MSCI Emerging Markets (EM) Index is projected to increase, potentially attracting $1.9 billion in foreign institutional investor (FII) investments, according to estimates by Nuvama Alternative Research.

Recent Performance

In Q2 FY25, HDFC Bank reported a 5.3% year-on-year (YoY) rise in standalone profit after tax, reaching ₹16,821 crore. Net interest income (NII) grew 10% YoY to ₹30,113 crore, while total deposits surged 15.1% YoY to ₹25.00 lakh crore. Advances also saw an increase, rising 7% YoY to ₹25.19 lakh crore. However, the gross non-performing assets (NPA) ratio inched up to 1.36% from 1.33% in Q1 FY25. 

Over the past month, HDFC Bank's stock has risen by 4.8%. On a year-to-date (YTD) basis, it has recorded a 6% gain, while over the last year, the stock has surged by an impressive 18%, solidifying its position as one of India’s most valuable lenders.

Conclusion

HDFC Bank's achievement of crossing the ₹14 lakh crore market capitalization milestone underscores its strong financial performance and market leadership. The bank's consistent growth in key metrics, coupled with its ability to attract significant institutional interest, highlights its resilience and appeal to investors. As one of India’s most valuable companies, HDFC Bank continues to play a pivotal role in the country’s financial ecosystem, maintaining its position as a benchmark in the banking sector.